Navigating sustainability: The role of environmental accounting in enhancing business performance

Abstract

This study investigates the adoption and impact of environmental accounting practices on business sustainability in Lebanon, a context rich with environmental challenges and a concentration of international organizations. Environmental accounting, recognized as a crucial tool for sustainable development, involves the systematic tracking, quantification, and reporting of environmental costs and activities, providing businesses with essential insights into their ecological impacts. Through quantitative analysis, employing Structural Equation Modeling (SEM) on a sample size of 300, this research aims to explore the relationships between environmental accounting, stakeholder engagement, environmental risk assessment, and their combined impact on business sustainability. Preliminary results suggest that robust environmental accounting and proactive stakeholder engagement significantly enhance organizational sustainability outcomes, while environmental risk assessments play a pivotal mediating role. The study identifies both the barriers to and the potential of environmental accounting in driving sustainable business practices, highlighting the need for stronger regulatory frameworks and greater awareness of environmental standards within the corporate sector. These findings offer critical insights for policymakers, business leaders, and academics interested in integrating environmental stewardship into business operations.